Title: Auction Use in the Supply Chain among Buyers, Suppliers and Transportation Service Providers: Can Sustainability be Incorporated in a Multiple Criteria Approach?
Abstract: Some buying companies (buyers) have used the electronic reverse auction (eRA) as a fast, single-round mechanism to select suppliers who bid the lowest prices. Although beneficial for the buyers, suppliers have perceived the eRA as exploitative and unfair. This seminar suggests that suppliers' bids should be based on multiple criteria, instead of only on price and proposes an interactive multiple criteria decision-making method (IMCDM) to improve the eRA. Contrary to other IMCDMs that generate some of the Pareto optimal solutions of a set, the proposed IMCDM uses a multi-objective evolutionary algorithm (MOEA) to generate all of the Pareto optimal solutions of a set, thus forming a Pareto optimal frontier. The buyer then uses this frontier to facilitate an interactive eRA supplier selection procedure. The use of auctions in the procurement of transportation services is then briefly discussed, as well as some of the sustainability considerations that take place in the shipper-carrier relationship.
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